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Informist, Tuesday, Dec. 30, 2025

 

MUMBAI – A recovery in the consumer sector during the December quarter is likely to be slower than anticipated with footfall being lower than expected and no major boost seen from the cuts in the goods and services tax, according to a report from brokerage Prabhudas Lilladher Institutional Equities.

 

Jubilant FoodWorks Ltd., which operates Domino's, picked up meaningful momentum in November and December due to strong month-on-month growth after witnessing a muted start to the quarter. The pickup in momentum was largely driven by a healthy growth in footfall due to a strong traction in value pizzas, the brokerage said. Westlife Foodworld Ltd., which operates McDonald's, saw its demand remain muted despite its core offerings of McVeggie and McChicken continuing to see healthy traction. Restaurant Brands Asia Ltd., which operates Burger King, has been witnessing a steady recovery in the December quarter with single-digit same-store sales growth, the report said. 

 

The recovery seen by Jubilant FoodWorks in the December quarter was led by higher order volume from urban catchments, which were aided by college festivals and localised events, the brokerage said. The company is facing lower competitive intensity as Domino's continues to gain market share in tier-1 cities due to Pizza Hut's performance being adversely affected by heightened competition, the brokerage said. Faster delivery along with frequent and aggressive discount-led promotions by Domino's have led it to become the preferred choice between the two, the brokerage said. The Domino's operator is also expected to have an edge due to the disruptions seen on delivery platforms as it has its own fleet of delivery drivers, the brokerage said. The company's net profit is expected to grow by 26.3% on year, with its earnings before interest, taxes, depreciation, and amortisation rising 16.6% on year in the December quarter. The company's sales are expected to grow by 14.3% on year for the quarter, according to the brokerage.

 

The delivery platforms are witnessing a disruption due to workers affiliated with major food delivery and quick-commerce platforms--Swiggy, Zomato, Zepto, Blinkit, Amazon and Flipkart--having announced another all-India strike on Dec. 31 to protest the decline in per-order payouts, 10-minute delivery targets, which are a concern for safety, and the absence of social security benefits. 

 

For Westlife Foodworld, the demand for the quarter is seen as flattish with the GST rate cuts failing to show a positive impact on demand. October and November saw flat demand while December saw a slight improvement. The brokerage expects the company to see healthy delivery growth for the month of December, particularly the Christmas period, due to a high volume of events and promotional offers. The company continues to see a steady performance while the Southern region continues to fall behind and will likely weigh on the company's same-store sales growth in the December quarter, according to the brokerage. The company is expected to report a net loss of around INR 92 million for the December quarter, with its EBITDA declining around 11.3% on year. However, the brokerage expects the company's revenue to rise around 4% on year for the quarter.       

 

Restaurant Brands Asia's overall demand continues to stay steady across the network, with the average ticket size of the company witnessing a marginal decline on year, according to channel checks by the brokerage. Average ticket price is a metric that shows the amount spent per customer per visit. This decline shows focus on value segment and continued pressure on discretionary spending. October saw positive momentum due to festive demand while November was largely subdued. December has seen a rebound in demand despite rising competition from standalone outlets and regional consumer chains. Burger King, too, has a headstart over other national chains which are just beginning to focus on the value segment with attractive combo offers, according to the brokerage. The brokerage expects the company's sales to grow 16% on year, while its net loss is likely to narrow to INR 154 million in the December quarter against INR 186 million in the year-ago quarter, according to the brokerage.  End

 

Reported by Akshat Saksena

Edited by Deepshikha Bhardwaj

 

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